Will Nifty cross the 16,400 hurdle to confirm pullback?
#Nifty may temporary cross the 16400 hurdle. As of writing this post, it already has. But it may not sustain as this is a temporary trend on Hourly Charts.
75 Min Chart of #Nifty
Price is well above the value zone of 16200.
Price is trading above the Alligator which is a bullish sign.
MACD is highly bullish above 0 line.
So its safe to assume that we might face first resistance at 17000 as this is the previous value zone.
Now coming to daily charts lets look at the chart.
MACD has gone positive but its still below the 0 line. That for me is not momentum but a sideways signal. I expect Nifty to revolve around 17000 - 16000 levels before giving any clear trend to either side.
Price is piercing the alligator to the upper side. Again a sideways signal as trend is changing from bearish to bullish now but not yet confirmed. Unless its a V recovery, my bets are sideways market.
Resistance again is at 17300 - 17000 zone which will not be easy to break.
Lastly, this upmove is not followed by fierce buy signals on Index Constituents like Reliance, HDFC, SBIN or Axis Bank or even IT Pack. So I doubt how long it can sustain.
Conclusion, we are bullish on 75 Minute charts as of now, but not bullish on Daily charts. We may as well revolve between 16000 - 17000 for some time before we get some direction.